Coronavirus (COVID-19) - support for business
The Chancellor of the Exchequer has announced a £330 billion package of support for businesses through this period, in close co-ordination with the Bank of England. This includes, business grants, loans to mortgage delays, postponement of IR35 tax reforms and no business rates.
The full text of the Chancellor's speech on COVID-19 financial support measures can be read here.
Statutory Sick Pay for businesses with fewer than 250 employees
In the Budget, the Chancellor announced that legislation will be brought forward to allow businesses with fewer than 250 employees to reclaim up to 14 days’ Statutory Sick Pay paid for sickness absence due to COVID-19.
The Business Rates retail discount will be raised to 100 per cent for one year and expanded to the leisure and hospitality sectors, with a £5,000 rates discount introduced for pubs in England with a rateable value below £100,000. Taken together with existing Small Business Rates Relief an estimated 900,000 properties, or 45 per cent of all properties in England, will receive 100 per cent business rates relief in 2020/21.
To support around 700,000 businesses currently eligible for Small Business Rate Relief, local authorities in England will receive a total of £2.2 billion to provide a £3,000 grant to help meet their ongoing business costs.
Business Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch on 1 April to support businesses to access bank lending and overdrafts.
Job Retention Scheme
Any UK employer with a PAYE system who agrees to retain staff during the outbreak (despite those staff being unable to undertake their ordinary work) will be able to apply directly to HMRC for a grant. This will cover 80% of salaries, up to £2,500 a month per worker. The scheme is expected to be in place before the end of April, and will be open for a minimum of three months.
To help businesses with cash flow in the short run, VAT payments due between now and the end of June will be delayed until the end of the financial year. For self employed people, Income Tax Self-Assessment payments due in July 2020 will be deferred until January 2021. If you find yourself in financial distress, you can contact HMRC’s dedicated helpline to get practical help and advice on 0800 0159 559.
Further information about financial support for businesses can be found on the Government website here.
Further information about financial support for employers can be found here.
|Chancellor's Letter||107.44 KB|
|Fact Sheet||197.68 KB|